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KLA Corporation
S&P 500 Nasdaq 100
$232.2B
Market Cap
81.6
P/E
3.54
PEG
70.3%
ROCE
87.5%
ROE
0.97
D/E
41.7%
OPM
-41.3%
% from 52W High
80
α RS
🔍 KLAC is showing a high-conviction setup because it matches 14 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 80. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 14/39 · Technology in Leading quadrant · RS Rating 80
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Currency-adjusted total returns for KLAC including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

KLA Corporation, together with its subsidiaries, provides process control and process-enabling solutions for manufacturing wafers, reticles/masks, chemicals/materials, integrated circuits (ICs), packaged ICs, and printed circuit boards. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; wafer inspection and metrology systems; semiconductor software solutions; KLA Pro systems; and specialty semiconductor manufacturing, benchtop metrology, surface characterization, material strength characterization, and electrical property measurement products. It also provides etch, plasma dicing, deposition and other wafer processing technologies and solutions; direct imaging, inspection, optical shaping, inkjet, and additive printing, as well as computer-aided manufacturing and engineering solutions; and components. In addition, the company offers service programs. It serves semiconductor, and semiconductor-related and electronic device manufacturers. The company operates in China, Taiwan, Korea, North America, Japan, Europe, Israel, and rest of Asia. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

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📈 Growth Pattern
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⭐ Superinvestors Holding KLAC
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Manager Shares Value % of Fund Period
Daniel Loeb Third Point LLC 11.0K $16.2B 0.78% Mar 2026
Steve Cohen Point72 Asset Management 980 $1.4M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q4 2026
Revenue
$3.66B
+15% YoY
Non-GAAP Diluted EPS
$1.05
+12% YoY
Operating Margin
43.7%
not stated
Non-GAAP Net Income
$1.39B
+11% YoY
What Went Right
  • Record revenue of $3.66B came in above the $3.575B midpoint and grew 15% YoY.
  • Advanced packaging process control revenue outlook raised to ~$1.1B in CY26, up more than 70% YoY.
  • Services grew 17% YoY to $820M, and free cash flow was $817M with operating margin at 43.7%.
  • Calendar 2026 WFE outlook raised to approximately low $150B, up from prior $140B-plus.
What to Watch
  • Memory pricing headwinds are running a little more than ~100bps and are expected to persist into 2027.
  • Gross margin guidance is roughly flat sequentially despite significant revenue growth, reflecting memory costs and tariff impacts.
  • Long lead times (about 12 months on average, with some products 18-24 months) plus fab space limitations could constrain near-term shipments.
  • Supply-chain capacity and memory component procurement are being actively managed to support second-half acceleration and 2027 growth.
Management Guidance
  • September quarter revenue guided to $4.0 billion ± $200 million.
  • Non-GAAP gross margin guided to 62.5% ± 1.0pp; non-GAAP diluted EPS guided to $1.16 ± $0.10.
  • Calendar 2026 WFE expectation raised to approximately $150B; KLA expects 2H26 revenue up roughly 20% versus 1H26 and continued growth into 2027.
  • Operating expenses expected at approximately $690M in the September quarter.
Investor Lens
The investment thesis is stronger after this call. KLA delivered record revenue, raised the calendar 2026 WFE outlook, and sees accelerating demand from AI infrastructure, advanced packaging, HBM, and broadening leading-edge logic investment. Management expects meaningful second-half acceleration and continued growth into 2027, supported by improving supply availability. The main offset remains gross-margin pressure from memory pricing and tariffs, but pricing and new product leverage are expected to support the 60-65% incremental gross margin model.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record $3.66B quarter, raised WFE outlook, and accelerating second-half momentum
Revenue
Revenue was a record $3.66B, up 15% year-over-year and 7% sequentially, above guidance. Foundry/logic is expected to be about 73% of semiconductor customer system revenue in the September quarter, with memory at about 27%.
Profitability
Non-GAAP net income was $1.39B and non-GAAP diluted EPS was $1.05, both at the upper end of guidance. GAAP net income was $1.36B, or $1.04 per diluted share.
Margins
Gross margin was 62.4%, at the upper end of guidance, helped by services mix and manufacturing scale despite memory pricing and tariff headwinds. Operating margin was 43.7%, with incremental operating margin of 59% in the quarter.
Balance Sheet
KLA ended the quarter with $4.9B in cash and marketable securities and $5.9B of debt. Operating cash flow was $906M and free cash flow was $817M; the company returned $876M to shareholders, including $571M in buybacks and $305M in dividends.
Key Risks
Management flagged continued memory pricing cost headwinds that are likely to persist into 2027. Long-lead-time supply chain constraints and fab space limitations were also cited as factors that limited first-half shipments and could pressure near-term growth.
Outlook
September quarter revenue is guided to $4.0B ± $200M with non-GAAP EPS of $1.16 ± $0.10. KLA raised calendar 2026 WFE to roughly $150B and sees second-half 2026 revenue up about 20% sequentially from the first half, with growth continuing into 2027.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-07-28
Record revenue and profitability exceeded guidance, driven by AI and advanced packaging demand. Outlook for 2026 and 2027 is robust, with accelerating growth, strong cash generation, and continued market share gains in process control.
Q3 2026 Q3 2026 2026-04-29
Revenue grew 11% year-over-year to $3.415 billion, with strong gains in advanced packaging and service. Guidance calls for high teen revenue growth in 2026, driven by AI, advanced packaging, and memory demand, despite margin headwinds from DRAM costs.
Q2 2026 Q2 2026 2026-01-29
Record 2025 results with 17% revenue growth, strong margins, and $3B capital return. 2026 outlook calls for continued outperformance, driven by AI, advanced packaging, and process control, despite supply and cost headwinds.
Q1 2026 Q1 2026 2025-10-29
Strong quarterly results with revenue and EPS above guidance, driven by AI and advanced packaging demand. Advanced packaging revenue is set to rise 70% year-over-year, and service revenue grew 16%. 2026 outlook includes a $300–$350 million China export control impact.
Q4 2025 Q4 2025 2025-07-31
June quarter revenue grew 24% year-over-year to $3.175B, with record free cash flow and strong advanced packaging and services growth. Guidance for September quarter remains stable, with gross margin impacted by tariffs but long-term outlook supported by AI and HBM demand.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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